Displaced Syrian families who fled violence in Syria queue for food at a refugee camp in Bardarash, on the outskirts of Duhok, Iraq. Reuters
Displaced Syrian families who fled violence in Syria queue for food at a refugee camp in Bardarash, on the outskirts of Duhok, Iraq. Reuters
Displaced Syrian families who fled violence in Syria queue for food at a refugee camp in Bardarash, on the outskirts of Duhok, Iraq. Reuters
Displaced Syrian families who fled violence in Syria queue for food at a refugee camp in Bardarash, on the outskirts of Duhok, Iraq. Reuters

Humanitarians disappointed by new round of shrinking pledges for Syria


Sunniva Rose
  • English
  • Arabic

The latest round of pledges at an annual conference for Syria in Brussels represented a 22 per cent decrease compared to last year.

At €7.5 billion ($8.1 billion), the figure was widely described as a disappointment by humanitarian workers as the situation for Syrian refugees continues to worsen.

The funds aim to support basic services delivered by international organisations to Syrians both in Syria and in neighbouring countries such as food, water, and education.

“The donor pledges are disappointing and inadequate,” Nicole Hark, Mercy Corps country director for Syria, told The National. “At the very least, we would have expected to at a minimum maintain commitment levels from last year.”

The international community pledged €7.5 billion for Syria at the conference on Tuesday, the EU commissioner for humanitarian aid and crisis management Janez Lenarcic said. That figure includes €2.5 billion in loans and the rest in grants.

Donors include the EU Commission, its member states and a number of other countries including Qatar, Iceland and Japan.

Last year, the international community pledged a total of €9.6 billion, including €4.6 billion in grants and €4 billion in loans. Yet an EU financial tracking report published on Friday showed actual disbursement only reached €4.3 billion.

“Unfortunately, our experience shows that the money pledged during the Brussels Conferences do not automatically translate to a firm commitment, evident in this year's funding situation where only 8 per cent of the humanitarian response plan is currently funded,” Ms Hark said.

“At a time where needs are the highest since the start of the civil war, lower funding means reduced support to communities where 90 per cent of the population already lives below the poverty line.”

Fear of economic collapse

Last year, funding in the form of grants went primarily to Syria, followed by Lebanon and Turkey, which host millions of Syrians. Top donors were the European Commission, Germany, the US and the Netherlands.

“We expect significantly more people to be on the brink of hunger given food assistance reductions, alongside further deterioration in access to basic needs and services, such as water, medical care and education,” warned Ms Hark. “Children, young women and mothers will suffer the most.”

The pledging conference was an opportunity for donor and host countries to air their differing views on how to best manage the 14-year civil war in Syria, which many say has become a frozen conflict.

Host countries are urging donors to start discussing voluntary returns, which remain minimal. Their call has been echoed by a number of EU countries, such as Cyprus, where the number of arrivals of Syrians by boat from Lebanon has recently increased.

A number of forced returns in Lebanon and Turkey have been documented by rights groups.

But the EU and several major donors such as Germany and the Netherlands say that Syria remains unsafe for refugees, pointing at enduring rights breaches, and lay the blame for that on Syrian President Bashar Al Assad.

Lebanon's Foreign Affairs Minister Abdallah Bou Habib described the presence of more than one million Syrians in his country as an “existential threat”. “All people in Lebanon say the status quo cannot continue,” he said.

Turkey's ambassador to the EU, Faruk Kaymakci, called on revitalising the political discussions to find a solution to the conflict. The main UN-supervised peace process has been frozen since 2017. “We have to get into action. Otherwise, the cost of inaction will be too high for all of us to handle,” said Mr Kaymakci.

“The freezing of the political dossier requires a strengthening of diplomatic initiatives at all levels to find a political solution,” said the director of the European affairs department at the UAE's Foreign Affairs Ministry, Abdulrahman Al Neyadi.

He warned of the consequences of the “unacceptable depreciation” of the Syrian currency, which has lost 99 per cent of its value since the start of the war in 2011.

“The international community must strengthen its efforts to avoid the economic collapse of Syria,” said Mr Al Neyadi.

A representative of Syrian civil society, Sawsan Abou Zeinedin, who leads the Madaniya network, said that the precarious position of Syrian refugees in the region is “merely a result of the failure to address the Syria crisis at the political level”.

“Syrian refugees have the right to, they want to, and they must return to their areas of origin as soon as possible,” said Ms Abou Zeinedin. “For this to be fulfilled, there needs to be a political effort and guarantees to ensure the conducive conditions for their safe and dignified return.”

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Close your windows and turn on the AC.

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Wear a face mask.

Stay indoors when conditions are particularly poor.

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The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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